Bitcoin Rebounds to 82,000 USD as Markets Weigh Inflation Data
Bitcoin climbed back to nearly $82,000 on Friday, paring earlier losses after dipping below $81,000 in the previous session, according to data from CoinDesk. The leading cryptocurrency tested its 50-day simple moving average as broader Asian equity markets recovered and the Japanese yen retreated from a brief surge. Despite the intraday bounce, digital assets faced severe headwinds from persistent macroeconomic pressures, including rising bond yields and hotter-than-expected inflation metrics out of the United States.
Cryptocurrency Liquidations and Spot ETF Outflows
The market volatility triggered $435 million in crypto-based futures liquidations over a 24-hour window, with long positions accounting for $385 million of that total. US-listed spot Bitcoin exchange-traded funds recorded $381 million in outflows on Thursday, based on preliminary figures from SoSoValue. Investing.com noted that these persistent outflows contributed to Bitcoin heading toward its second negative week, with a weekly decline of roughly 2% and a monthly drop exceeding 2%.
US producer prices drive restrictive monetary policy expectations
The renewed pressure on speculative asset classes stemmed from a sharper-than-expected rise in US producer prices. CoinDesk reported that the US Producer Price Index for September jumped 1.3%, far surpassing the 0.4% increase recorded in August and beating consensus forecasts. On an annual basis, the PPI climbed 6.3%, exceeding analyst estimates of 5.3%. These stubborn inflation readings cemented market expectations for a restrictive monetary policy stance from the Federal Reserve, driving tech stocks down and spilling over into digital asset markets as bond yields fluctuated.
What caused Bitcoin ETF drops and yen volatility?
What caused the sharp drop in spot Bitcoin ETFs?
Persistent outflows totaled $381 million on Thursday alone, as reported by Investing.com.
How did the Japanese yen impact global markets during the session?
The yen initially climbed to 156.07 per US dollar—its strongest level since September 18—following higher-than-expected Japanese inflation data, before quickly retreating back toward 157 per dollar.
What specific inflation figures surprised the markets in September?
The US Producer Price Index rose 1.3% in September, outstripping the 0.4% increase seen in August and topping analyst forecasts of 0.5%, as detailed by CoinDesk.
Which major stock indices and commodities showed recovery on Friday?
Gold recovered to $4,020 per ounce after hitting a multi-month low of $3,986, while Asian benchmarks like Japan’s Nikkei and South Korea’s Kospi rebounded from their intraday lows.